Fundamental Material Drivers

How do entities respond to the social and market changes caused by the sustainability transition

We assess the adaptive capacities of companies and countries to prepare themselves for the transition risks against seven Fundamental Material Drivers. These drivers show how companies and countries respond to the social and market changes caused by the sustainability transition.

 Fossil fuel use

Management of the use of fossil fuels, impacting among other things on climate change, air pollution, energy availability and human health

 Water use

Management of fresh water use in water-scarce areas, impacting among other things on water availability, water quality, health and food production

 Land use

Land conversion management especially for agricultural purposes, impacting on climate change, biodiversity loss, and water flows but also local communities and inequalities.

 Chemicals and waste management

Management of toxic and long-lived chemical substances and waste and plastics, impacting on the environment and human health.

 Social capital management

Actions to maintain the licence to operate on which companies and countries depend, impacting on human rights, community relations, social equity and access and affordability of, for instance, healthcare and finance.

 Human capital management

Activities related to labour and union rights, employee health & safety and labour practices, impacting on educational opportunities and on income and gender inequality.

 Organisational behaviour and integrity

Actions to create an ethical business environment, impacting on community networks, justice and work conditions. For companies, this refers to their own business model, but also to how they treat companies upstream and downstream in their value chain. For countries this refers to how they govern human, civic and political rights.